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Ofcom propose massive increase in the spectrum licence fees for 900MHz and 1800MHz


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Old 10-10-2013, 09:09
Everything Goes
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Ofcom propose massive increase in the spectrum licence fees for 900MHz and 1800MHz with EE paying the most and Three paying the least.



http://media.ofcom.org.uk/2013/10/10/proposed-licence-fees-for-mobile-spectrum/?utm_source=updates&utm_medium=email&utm_campaign=alf-consultation
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Old 10-10-2013, 09:44
daleski75
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Will this mean an end to cheap tariffs as the networks offload the extra cost onto us consumers?
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Old 10-10-2013, 10:33
sethpet
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Will this mean an end to cheap tariffs as the networks offload the extra cost onto us consumers?
Of course it will, no business would swallow these costs every penny will be passed to the consumer.

Nothing but another stealth tax.
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Old 10-10-2013, 11:04
klendathu
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Of course it will, no business would swallow these costs every penny will be passed to the consumer.

Nothing but another stealth tax.


Rip off Britain
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Old 10-10-2013, 11:18
enapace
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Of course it will, no business would swallow these costs every penny will be passed to the consumer.

Nothing but another stealth tax.
Not really a stealth tax I always thought Vodafone and O2 paid very little for the chunk of 900mhz they had
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Old 10-10-2013, 11:30
sethpet
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Not really a stealth tax I always thought Vodafone and O2 paid very little for the chunk of 900mhz they had
The government told ofcom to increase legacy licenses in line with the recent licence pricing.

The networks will pass that cost on to you and I as consumers.

It can only be described as an indirect tax that the government will take under the radar.
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Old 10-10-2013, 12:08
Thine Wonk
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This is great news for Three as they don't operate 2G, so will have to pay the least. This also may push some networks towards an earlier 2G switch-off.
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Old 10-10-2013, 12:16
sethpet
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This is great news for Three as they don't operate 2G, so will have to pay the least. This also may push some networks towards an earlier 2G switch-off.
That's the first time I've ever heard a companies costs being increased described as great news.

Of course what you meant to say is three are the least financially impacted as they don't provide customers with voice and text fallback of 2G like their competition.
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Old 10-10-2013, 12:34
exterra
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it could actually result in companies cutting their prices to encourage greater use and thus increase overall turnover, particularly on data...
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Old 10-10-2013, 14:26
moox
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The government told ofcom to increase legacy licenses in line with the recent licence pricing.

The networks will pass that cost on to you and I as consumers.

It can only be described as an indirect tax that the government will take under the radar.
If Vodafone and O2 have been benefiting from cheap spectrum whereas EE and 3 have had to pay more, why shouldn't the paying field be leveled?

Vodafone aren't a cheap network anyway, they're actually very expensive for the mediocre 3G service you get. O2 aren't that great either - they're very unreliable. You'd think they would have spent the savings on their networks...
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Old 10-10-2013, 14:27
moox
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Will this mean an end to cheap tariffs as the networks offload the extra cost onto us consumers?
It hasn't stopped 3 doing that and they have that ridiculously expensive 3G 2100MHz spectrum to pay off.
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Old 10-10-2013, 14:48
Everything Goes
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EE's licence fee will go from £24.9m to £107.1m (increase of £82.2 million)

O2 & Vodafone's licence fee will go from £15.6m to £83.1m (increase of £67.5 million)

Three's licence fee fee will go from £8.3m to £35.7m (increase of £27.4 Million)

Yes I guess they will pass it on to customers some way.


http://media.ofcom.org.uk/2013/10/10...f-consultation
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Old 10-10-2013, 14:55
enapace
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EE's licence fee will go from £24.9m to £107.1m (increase of £82.2 million)

O2 & Vodafone's licence fee will go from £15.6m to £83.1m (increase of £67.5 million)

Three's licence fee fee will go from £8.3m to £35.7m (increase of £27.4 Million)

Yes I guess they will pass it on to customers some way.


http://media.ofcom.org.uk/2013/10/10...f-consultation
Honestly I can't see how they could do it on contracts they already 40-50 a month for the high ones. Most likely pay as you go that will suffer.
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Old 10-10-2013, 15:20
Everything Goes
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EE and Vodafone aren't happy

But Three are unsure about it

A Vodafone spokesman said: 'We are, however, disappointed that Ofcom is proposing a 430% increase in the fees we pay for our existing spectrum at a time when we are investing more than ever in vital national digital infrastructure. Vodafone UK is spending more than £900m this year alone on its network and has pledged to bring indoor 4G coverage to 98% of the UK population by 2015. The regulator should be encouraging such private sector investment in infrastructure and new services like 4G, which will benefit consumers, businesses and the wider British economy for many years to come.'
An EE spokesperson said: 'EE will engage in Ofcom's consultation process and reflect our view that there must be a balance between licence fees and the critical 4G network investment consumers and businesses are demanding to drive growth and jobs for the UK economy. The proposed increase in licence fees is excessive at a time when we are investing heavily in the roll out of 4G.'
A Three spokesman added: 'We welcome Ofcom’s move to reflect the market value of legacy spectrum holdings, but the proposals fail to recognise the relative value of high and low frequency spectrum, despite evidence from around the world. The sums proposed by Ofcom over-value high frequency spectrum.'



http://www.mobiletoday.co.uk/News/26....e4rzzoqT.dpuf
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Old 10-10-2013, 15:27
moox
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Perhaps licence fees should be adjusted depending on how much investment has been made and the result of that investment.

Vodafone and O2 are still penalised because they have spent bugger all on their 3G network (and O2's network still collapses all the time), EE and 3 get a discount because they've actually tried to make the most of their spectrum by building a decent 3G network (and EE are well ahead on LTE)
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Old 10-10-2013, 17:57
enapace
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Perhaps licence fees should be adjusted depending on how much investment has been made and the result of that investment.

Vodafone and O2 are still penalised because they have spent bugger all on their 3G network (and O2's network still collapses all the time), EE and 3 get a discount because they've actually tried to make the most of their spectrum by building a decent 3G network (and EE are well ahead on LTE)
It probably more the amount of spectrum that Vodafone and O2 has honestly in both 900MHz and 1800MHz. They have nearly double the amount of spectrum in 900MHz as they do in 800MHz that is extremely valuable spectrum. They were always going have to pay a lot to continue using it.

Honestly this is going give Vodafone and O2 even more of an incentive to get rid of there 2G in the coming years. To make sure they maximise the spectrum value.

Likely makes EE regret slightly that they only gave up 30MHz of 1800MHz. 82 million pounds a year is quite a big increase that they got make back somehow.
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Old 10-10-2013, 18:26
The Lord Lucan
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Ofcom always do this pluck a huge number, then get battered down a little.

I can't but wonder if this is due to the lack of cash the govt got from the 4G spectrum... balancing the hole in the budget.

All networks have a case to challenge this, at least until a few years after the coverage minimums/targets have been met.

anyone have any details on spectrum charges elsewhere in the world?

Not sure how this will encourage 2G switch off... networks want this already but their hands are tied for now. They will still get charged for using the same spectrum in 4G if it is reused.. unlikely anyone will give back spectrum or sell it. Fair enough getting 2G customers onto a 4G tariff would make slightly more profit but you'd have to have the coverage there to make that up-sale possible... which is hugely expensive to accelerate.
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Old 10-10-2013, 18:30
RAN Man
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EE and Vodafone aren't happy

But Three are unsure about it


http://www.mobiletoday.co.uk/News/26....e4rzzoqT.dpuf
Three aren't unsure, they want to pay less for their high frequency spectrum.
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Old 10-10-2013, 18:34
Andrew_Rigney
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Ofcom Are Bunch Of Blody Idiots, Close Them Down That's The Answer
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Old 10-10-2013, 19:17
xreyuk123
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Pretty stupid move by the governmen to ask Ofcom to do that.. They're on the backs of mobile providers because they want 4G so badly because we're so far behind other countries, yet they feel the need to increase licensing fees, thus preventing investment in 4G.
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Old 10-10-2013, 19:29
finbaar
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Bloody hell if EE pass the full cost onto their 28m customers they could be paying as much as 25p extra a month. How will we all afford that.? Let's March Downing Street and over through government.
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Old 10-10-2013, 19:36
jabbamk1
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I can't but wonder if this is due to the lack of cash the govt got from the 4G spectrum... balancing the hole in the budget.
My thoughts exactly.
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Old 10-10-2013, 19:37
jabbamk1
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Bloody hell if EE pass the full cost onto their 28m customers they could be paying as much as 25p extra a month. How will we all afford that.? Let's March Downing Street and over through government.
it's people like you who really piss me off.

Are you honestly saying that EE should have an RPI increase every 12 months...
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Old 10-10-2013, 19:46
Thine Wonk
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Pretty stupid move by the governmen to ask Ofcom to do that.. They're on the backs of mobile providers because they want 4G so badly because we're so far behind other countries, yet they feel the need to increase licensing fees, thus preventing investment in 4G.
This isn't big money we're talking about and it is in-line with who holds the most spectrum. Those 2G blocks were given away cheaply compared to the 3G auction, this will actually level the playing field.

There is no danger of a lack of investment in 4G, the networks got the spectrum sooooo cheap. The 2100Mhz spectrum raised £16BN ! O2 and Vodafone got that 900Mhz cheap, this will mean the companies who hold the spectrum pay the right amounts for the amount of spectrum they own. If you have lots of 900Mhz O2 and Vodafone will have to pay a lot more to keep running it. They were allowed to re-use it for 3G for free after all !
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Old 10-10-2013, 19:58
finbaar
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it's people like you who really piss me off.

Are you honestly saying that EE should have an RPI increase every 12 months...
Did you not read my post? I was quite clearly against what ofcom are doing.
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